May 18, 2008	Sunday	Jamadi-ul-Awwal 12, 1429

KARACHI, May 17: Cotton prices were quoted further higher by Rs25 per maund on Saturday as spinners and mills indulged in big-lot business in an apparent effort to grab the floating stock of fine lots.

As a result, in the ready section a big deal of 2,200 bales was reported at season’s peak level of Rs3,700 per maund and some analysts predict that Rs4,000 per maund could well attain the base level both for the current and the new crop in the coming weeks.

“The weakness of the rupee against the US dollar has made most of the imported stuff expensive and cotton continues to be one of the chief beneficiaries of it,” they said.

The current pick-up in mill buying reflects that the weak rupee has given a major boost to them on the textile export front and indications are that the export target of textiles for the current fiscal year could be surpassed, they added.

However, much of the future performance of the textile sector will largely depend on the new crop, which is in the sowing stage in the major growing areas despite shortage of irrigation water, ginners said.

A good new crop after the last two major failures could significantly add to the export earning capacity of the textile sector and in turn a fair price to the grower, they added.

The current official emphasis on the certified seed for the new crop and an effective pest control steps by the growers are expected to ensure a healthy crop during the next season, market sources hoped.

Official spot rates were again revised upward by Rs25 to 3,475 per maund.

The following are some of the notable deals, gone through in the ready section late on Saturday evening: 2,200 bales, Gilanwali at Rs3,700 and 1,900 bales, Ghotki, Mirpur Mathelo and Dharki at Rs3,475 to Rs3,600.